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Tata Trusts seek nod to appoint Tata Sons chair panel
Livemint··1 Sept
Top executives of Tata Trusts have asked the Maharashtra charity commissioner to resolve a deadlock over appointing a new Tata Sons chairman. N. Chandrasekaran told the Tata Sons board on August 12 he would not seek a third term ending 20 February. Sir Dorabji Tata Trust, which owns 27.98% of Tata Sons, passed a resolution to establish a five-member panel.
Prism
What It Means For You
- Tata Group employees and investors await clarity on leadership after Chandrasekaran said he would not seek a third term ending 20 February.
- Sir Ratan Tata Trust cannot conduct business until a charity commissioner order from 15 May is lifted, blocking its board meetings.
- Shareholders in Tata Sons will depend on a five-member search panel once both trusts nominate members to the committee.
What's Happening
- Noel Tata and trustees Darius Khambata and Jehangir HC Jehangir have requested permission for Sir Ratan Tata Trust to nominate a search panel member.
- Chandrasekaran announced his decision not to seek a third term less than 24 hours before Sir Dorabji Tata Trust passed its resolution.
- Noel Tata has also conveyed to Tata Sons independent directors the need to include a Tata Sons representative on the selection committee.
Tata Sons Chair Selection Deadlock
- Sir Dorabji Tata Trust owns 27.98% of Tata Sons and is the conglomerate's largest philanthropic entity.
- A charity commissioner order dated 15 May bars Sir Ratan Tata Trust from holding board meetings following allegations by two trustees.
- The letter to the charity commissioner was hand-delivered last week requesting permission to appoint a selection committee member.
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